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Name the two tools the Bank of Canada has to affect the money supply and explain how the Bank would use each tool to increase

  1. Name the two tools the Bank of Canada has to affect the money supply and explain how the Bank would use each tool to increase the money supply.
  2. Explain why an open-market purchase of government securities of $10 million by the Bank of Canada will likely increase the money supply by more the $10 million.

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